The tourism firms also used their sectorial associations to create communication lobbies to influence governmental decisions, thereby acting as institutional entrepreneurs. These actions provide evidence of co-evolution. For instance, hotels urged a reform of the labor regulation to make staffing arrangements and implementing adjustment plans more flexible and cheaper. The government reformed the labor regulation and the tourism firms in turn used the new rules to act according to the demand. Additionally, as the government cuts contracted domestic demand, hotels not only explored new tourist source countries but also urged the government to support their strategy by increasing the staff at Spanish consulates in the new target countries. From that moment regular meetings have been held in which firms inform the government about upcoming demand so the gov- ernment can ensure that consulates can satisfy the demand for travel visas. A further example con- cerns the Spanish Coastal Law, which involved the demolition of hotels close to the sea. The application of this Law has now been suspended for 75 years. Thus, co-evolution shows how tourism firms act as institutional entrepreneurs and contribute to shaping the institutional environment that affects them.